In the latest close session, Doximity (DOCS) was down 1.3% at $24.39. This change lagged the S&P 500's 0.24% loss on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the medical social networking site had gained 1.23% over the past month, outpacing the Medical sector's loss of 0.68% and lagging the S&P 500's gain of 6.42%.
Market participants will be closely following the financial results of Doximity in its upcoming release. It is anticipated that the company will report an EPS of $0.28, marking a 26.32% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $143.67 million, up 3.89% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.54 per share and revenue of $643.12 million, indicating changes of +8.45% and +12.75%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Doximity. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Doximity boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Doximity is presently trading at a Forward P/E ratio of 15.57. This represents a discount compared to its industry average Forward P/E of 22.46.
Also, we should mention that DOCS has a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical Info Systems stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Medical Info Systems industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Doximity, Inc. (DOCS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).